In order to accomplish these goals, we need to maintain a certain standard of operation; referred to as our Best Practice Bookkeeping Policy.
This policy is in direct alignment with the Tax Practitioners Board Professional Code of Conduct to which we are bound as Registered BAS Agents. This policy focuses on ensuring that in the best interests of our Clients, we are protecting them by ‘Audit Proofing’ their accounts.
In the event that the ATO raises a question and requires validation of claim/s from the perspective of GST, we need to ensure that our Clients can substantiate that claim.
It is for that reason that we have such stringent policies in place that require our clients to electronically submit their expense receipts and supplier invoices via their dedicated receipt management app account. This enables us to have duplicate copies of those source documents and reconcile their accounts more efficiently while constantly ensuring our Client’s are Audit Proof.
Those transactions that are not accompanied by a legitimate Tax Invoice or Receipt, are not coded as a Business Expenses with GST but are allocated instead to a holding account for the Clients Accountant to make the final decision and adjustment on at the end of the financial year.
We will only process those transactions that can be verified, detailing the nature of the expense and it’s GST content, by source documentation in accordance with the Code of Professional Conduct and in reference to relevant ATO Income and Deduction processing guidelines.
If we feel that in accordance with those guidelines, the expense is not a legitimate business expense, that transaction will be allocated to a holding account for EOFY review by the Client’s Accountant.